EXERCISE 7-8 Sell or Process Further [LO 7-71 Morrell Company produces several products from processing krypton, a rare mineral. Material and pro- Orsing costs total S30,000 per ton, one-third of which are allocated to the product merifulon. The meri- fiulon produced from a ton of krypton can either be sold at the split-off point, or processed further at a cost of $13.000 and then sold for $60,000. The sales value of merifulon at the split-off point is $40,000. Required: Should merifulon be processed further or sold at the split-off point?